Not real happy about this:
General and administrative expenses: $574,242
What did they do that costs half a million dollars? Prior to this the company was spending about 10% of this annually. This report leaves a lot of detail out on this.
Then:
From time to time, the chairman, CEO and majority stockholder and stockholders of the Company advance funds to the Company for working capital purposes. Those advances are unsecured, non-interest bearing and due on demand. For the quarter ended June 30, 2015, these parties advanced $15,043 to the Company. On June 8, 2015, the Company issued 30,000,000 shares of common stock at $0.018 per share to repay $150,000 of the advances. Since the fair value of the shares issued is $540,000, the Company recorded the difference between the $540,000 and the $150,000 as loss in extinguishment of debt for $390,000. As of June 30, 2015, the Company owes a total of $16,093 on these advances which are due to two shareholders as follows: Chas Radovich $8,047 and Leroy Delisle $8,046.
Perhaps an accountant can explain this to me. Who did they issue the shares too? Why did they issue them at the lowest stock price point of the year? What do they mean by writing off $390,000 as a loss in extinguishment of debt. Are they saying it costs them $540,000 to eliminate the $150,000 in debt? 30,000,000 shares is substantial dilution if all it paid for was administrative expenses. If it brought the Magatek maching to Vegas and got it operational that is different. They need to explain this. JM2cents
